Daniel Yan, one of the founders of Matrixport, a crypto services company based in Singapore, predicts that a market correction is on the horizon after Bitcoin recently reached its highest price since 2021.
Yan expressed caution about the current market sentiment in a post on February 28th. He believes that by the end of April, there will be a healthy correction of around 15%. Yan’s reasoning behind this prediction is the macroeconomic landscape in March, which he describes as “tricky.” Factors such as the upcoming meeting of the United States Federal Reserve, the Bitcoin halving, and Ethereum’s Dencun upgrade contribute to this uncertainty.
Coincidentally, on the same day, Bitcoin surpassed the $60,000 milestone that was previously seen during the bull market of 2020-2021. The Crypto Fear & Greed Index currently indicates extreme greed with a score of 82/100. This surge in market enthusiasm can be attributed to the recent approval of several spot Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission. BlackRock’s iShares Bitcoin Trust alone manages $7.5 billion in assets.
Despite Yan’s bearish sentiment, it is worth noting that Matrixport’s market predictions have not always been accurate. In January, when Bitcoin was trading at $40,800, Matrixport warned investors about the potential lack of approval for spot Bitcoin ETFs, citing political risks. However, spot Bitcoin ETFs have indeed been approved since then, and Bitcoin has experienced a growth of over 50% within a few weeks.
Related: Bitcoin breaks the $60,000 barrier for the first time in over two years.